Question 1

In the movie A Knight's Tale,three peasants win a jousting tournament and must decide whether they should enjoy most of their winnings now or use most of it for training to improve their future jousting performance.Use appropriate production possibilities frontiers (PPFs)and words to describe the investment trade-off they face.

Accepted Answer

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Question 2

Why might Shaquille O'Neal,a 7'1" former National Basketball Association (NBA)player,hire professional movers to help him move,even though his size and strength likely make him more proficient (better)at furniture moving than the professionals he may hire?

Accepted Answer

The answer of Why might Shaquille O'Neal,a 7'1" former National...

Question 3

You can make four trips to the garden center with your pickup truck and haul it yourself.It will cost you $75 per load for the mulch,plus $25 in fuel and truck wear per load.You estimate it will take about five hours to haul and unload all four loads.
What is the full cost of each method? Which method is cheaper? How is opportunity cost relevant?

Accepted Answer

The answer of You can make four trips to the...

Question 4

Draw a production possibilities frontier (PPF)that shows a pizza shop's production trade-offs between producing pizzas and stromboli.Suppose the pizza shop upgrades to a larger,more-automated oven.On the same graph,show how the PPF changes.(The oven is used to bake both pizzas and stromboli.)

Accepted Answer

The answer of Draw a production possibilities frontier (PPF)that shows...

Question 5

Is it always better to forgo current consumption in order to invest more in capital goods that will provide more growth in society's production possibilities frontier (PPF)and make us better off in the future?

Accepted Answer

The answer of Is it always better to forgo current...

Question 6

How can a person who is "better" or more efficient (in that they have an absolute advantage in the production of various goods on the PPF)at producing several things be made even better off by specialization and trade?

Accepted Answer

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Question 7

Why doesn't our society invest more resources into the production of capital goods to enhance the level of growth in our future production possibilities frontier (PPF)?

Accepted Answer

The answer of Why doesn't our society invest more resources...

Quiz 2: Model Building and Gains From Trade

Why might Shaquille O'Neal,a 7'1" former National Basketball Association (NBA)player,hire professional movers to help him move,even though his size and strength likely make him more proficient (better)at furniture moving than the professionals he may hire?

Draw a production possibilities frontier (PPF)that shows a pizza shop's production trade-offs between producing pizzas and stromboli.Suppose the pizza shop upgrades to a larger,more-automated oven.On the same graph,show how the PPF changes.(The oven is used to bake both pizzas and stromboli.)

Is it always better to forgo current consumption in order to invest more in capital goods that will provide more growth in society's production possibilities frontier (PPF)and make us better off in the future?

How can a person who is "better" or more efficient (in that they have an absolute advantage in the production of various goods on the PPF)at producing several things be made even better off by specialization and trade?

Why doesn't our society invest more resources into the production of capital goods to enhance the level of growth in our future production possibilities frontier (PPF)?